Big Setback For Senthil Balaji As Madras HC Turns Down Bail Plea In TASMAC Corruption Case

Published 30 July 2026 · india

Big Setback For Senthil Balaji As Madras HC Turns Down Bail Plea In TASMAC Corruption Case Published By, Last Updated: July 30, 2026, 11:52 IST

Big Setback For Senthil Balaji As Madras HC Turns Down Bail Plea In TASMAC Corruption Case Published By, Last Updated: July 30, 2026, 11:52 IST As part of the investigation, the anti-corruption agency conducted searches at 45 locations across Tamil Nadu, including Balaji's residence and premises linked to other accused. Rapid Read DMK leader Senthil Balaji. TASMAC Scam Case: In a big setback for former Tamil Nadu Minister and DMK leader V Senthil Balaji, the Madras High Court on Thursday rejected his anticipatory bail petition in the Directorate of Vigilance and Anti-Corruption (DVAC) case linked to alleged irregularities in the state-run TASMAC liquor corporation. Justice GK Ilanthiraiyan rejected the petiton, noting that the allegations involved large-scale corruption and that custodial interrogation of Balaji was necessary for a proper investigation. The High Court also took note of the prosecution’s allegation that the accused had abused their official positions, entered into a criminal conspiracy and caused significant losses to the state exchequer. The High Court’s order came a day after the DVAC registered an FIR against Balaji, former TASMAC Managing Director S Visakan and five otherr over alleged irregularities in the allotment of bar licences, transport tenders and liquor procurement between 2021 and 2025, when Balaji held the Electricity and Prohibition & Excise portfolios.

The anti-corruption agency also conducted searches at 45 locations across Tamil Nadu, including premises linked to Balaji and other accused. As part of the investigation, the anti-corruption agency conducted searches at 45 locations across Tamil Nadu, including Balaji’s residence and premises linked to other accused. According to the FIR, the police uncovered an alleged organised network referred to as the “Karur gang", which allegedly manipulated bar licence allotments, cartelised tenders, influenced key administrative decisions and facilitated kickbacks through bogus and inflated invoices. The FIR also alleged illegal operation of liquor bars, irregularities in transport contracts, overcharging of customers above the Maximum Retail Price (MRP), and widespread financial losses to the state. The syndicate ran all liquor bars in Karur district and coerced senior TASMAC officials into allotting bar licenses across Tamil Nadu to their favoured candidates. Political operatives associated with the Karur gang also allegedly extorted party funds directly from bar owners. The DVAC investigation has also flagged widespread malpractices across TASMAC operations between 2021 and 2025. Furthermore, while 284 bars in the western region were officially listed as closed, they continued operating on the ground without licence renewals or submitting monthly demand drafts. The case has been registered under Sections 120B, 167, 409, 109, and 420 of the IPC, corresponding provisions of the Bharatiya Nyaya Sanhita (BNS), 2023 (including Sections 61(2), 201, 316(5), 49, and 318(4)), and Sections 7(c), 12, 13(1)(a), and 13(2) of the Prevention of Corruption Act, 1988 (as amended in 2018).